MGIC Investment Q3 net income falls year-over-year

Overview

• US mortgage insurer reported Q3 net income of $175 mln

• Q3 net income and adjusted net operating income declined year-over-year

• Company repurchased 5.1 mln shares for $152.5 mln and paid $0.17 dividend

Outlook

• Company agreed to new quota share reinsurance for eligible 2028 and 2029 NIW

Result Drivers

• HIGHER DELINQUENCIES - Co saw an increase in primary delinquency inventory and delinquency rate, contributing to higher losses incurred and a higher loss ratio

• LOWER EXPENSES - Underwriting expense ratio fell compared to the prior year, indicating some cost control

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for MGIC Investment Corporation is $29.50, about 3% above its November 3 closing price of $28.64

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 3 - United Fire Group Q3 profit falls 10% as combined ratio worsens

• Nov 3 - AIG Q3 net premiums written rise on commercial, personal insurance growth

• Nov 3 - Insurer American Financial Group's Q3 adj EPS beats on underwriting and premium growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)